PARIMUTUEL TAX

67.16.105 DIFFERENTIAL TAX RATES

Description: This statute provides differential rates for the gross receipts parimutuel tax. The current tax rate is dependent on the gross receipts at the horse racing track during the previous year. If the receipts were greater than $50 million, the parimutuel tax rate is 1.3 percent. If the receipts were less than $50 million, the tax rate is 0.52 percent. No tax applies to tracks where race events are nonprofit in nature and do not last longer than 10 days annually. From 1933 to 1978 the single tax rate was 5.0 percent. In 1979 differential rates were first provided and the rates have been changed several times since then.

Purpose: The presumed purpose is to provide support to the smaller horse racing tracks.

Category/Year Enacted: Economic development; 1979 (rate schedule revised in 1985, 1991 and 1998).

Primary Beneficiaries: Horse race track operators.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 62 132 132 132
Local taxes - - - - - - - -

If a uniform rate of 1.3 percent prevailed, would the estimated revenue be realized? Yes.